Utah Campaign-Finance Case Highlights Secrecy of Political Nonprofits
March 19, 2014 | Read Time: 1 minute
An unusual legal case in Utah demonstrates issues surrounding the campaign finance system and the potential role of “social welfare” nonprofits in political corruption, reports The New York Times.
Public records, affidavits, and a new legislative report reveal that former Utah attorney general John Swallow, whose campaign allegedly received hundreds of thousands of dollars in hidden donations from payday loan companies, sought to use his office to defend the industry, which is widely criticized for preying on the poor. Amid accusations of corruption, Mr. Swallow, who was elected in 2012, resigned in November after less than a year in office.
The case offers a look into the world of political nonprofits, which can anonymously channel large donations into campaigns, the Times writes. Such illegal use of the 501(c)(4) designation is the impetus for new rules being drafted by the Internal Revenue Service regarding election spending by these nonprofits.
